📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    A certain amount

    invested at 16% p.a. compound interest, compounded annually, grows to Rs. 6969.6 in 18 months. What will be the simple interest earned if the same amount is invested at the same rate for 4 years?
    A Rs. 3240 Correct Answer Incorrect Answer
    B Rs. 3840 Correct Answer Incorrect Answer
    C Rs. 3800 Correct Answer Incorrect Answer
    D Rs. 3040 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    ATQ,

    Let the principal be Rs. ‘P’ ATQ: 1.08 × 1.16 × P = 6969.6 So, P = 6000 Simple interest = 0.16 × 4 × 6000 = Rs. 3840

    Practice Next
    More Simple and compound interest Questions

    Relevant for Exams:

    ask-question